The field of in-home care is growing.If you help those who need it, they will not end up in the hospital, assisted living or nursing home.It can be difficult to establish a caregiving business if you don't know how.All in- home caregiving businesses have some important features in common.
Step 1: Care services are paid for by Medicare and Medicaid.
The largest payers of assisted-living care in the United States are the government programs.Medicare covers a variety of home care services, including physical and occupational therapy, the administration of medicine, and medical equipment.It doesn't cover daily living care, like bathing or dressing, or homemaking services.Medicaid coverage varies greatly by state, but usually covers ADLs, medical supplies, and part-time nursing.Determine which aspects of the business are covered by the programs in your area.You can use this to tailor your services so that they are mostly free to your customers.
Step 2: A demographic study can be done for seniors in your area.
The elderly are in greatest need of in- home care.US Census data shows the percentage of households with people over the age of 65 in each state.If there are enough individuals requiring in- home care to warrant starting a business, use this data in conjunction with more local data gathered by your state censuses.The state of Florida has the highest percentage of 65 and older individuals in the nation and the second highest population of elderly.For projections about the number of seniors in a given area, check the census data closely.Is it going up or down?If it is holding steady or increasing, an in- home care business would do well.
Step 3: What services will your business provide?
Some in- home businesses are not medical.There are two types of businesses that provide care.If you have a medical caregiving business, you will need to hire licensed nurses, rehab therapists, and other medical personnel in addition to the more basic caregiving duties consistent with non-medical in- home care.Making and serving meals, housekeeping, transportation, and other daily life activities are part of non-medical in- home caregiving.
Step 4: Do you want to go into business for yourself or with a franchise?
Each has some advantages and some disadvantages.If you choose to operate a franchise and pay the fees necessary to join a larger, already established caregiving company, you will get all the benefits that come with it.If you work with a respected brand, you will get a positive reputation, lower start-up costs, and an ongoing support system.It will take more time, energy, and money to start your own home-care business.You have to register the business, come up with a business plan, and set your own prices.In order to get your name out, you need to engage in intensive marketing.You won't be constrained in the way you would be if you were operating as a franchise, and you will have more freedom in how you run your business as an independent outfit.You have to check with the parent company to make sure that the area you want to expand into does not already have a franchise.Staff uniforms and licensing costs are included in the start-up costs of an independent business.Office space, insurance, and staff training are some of the costs of running a caregiving business.New wage laws can affect your ability to pay your employees.Many states have passed laws to increase minimum wage, with California and New York both planning to jump up to $15 over time.If you work more than 40 hours per week, you will be paid overtime if you make less than $47,476 per year.There are different state laws regarding the treatment of independent contractors and employees.Check with your state's regulations to make sure you are following them when hiring and paying employees.
Step 5: A business plan can be created.
The road map for your business is a business plan.You see yourself in one, three, and five to 10 years.The chain of command includes who is the owner or proprietor of the business, as well as each individual's role within it.You can grow your business with funding and loans if you have a business plan.Data on your financial projections is required in your business plan.How much have you spent on marketing?How much have you made?Do you think earnings will go up or down?A mission statement should be included.The brief description of what your business does is called the mission statement.For instance, your mission statement might be to provide comprehensive medical in- home care for those in need in your area.A vision statement should be included as well.A long-term, expansive statement of specific goals for your business is what your vision statement should be.A vision statement might say, "To continue building our reputation as the top in- home care provider in the region."Specific, actionable goals will be adopted by your business to meet its mission and vision.The goal is to reach 97 customer satisfaction and gain control of 20 percent of the in- home medical care market over the next five years.
Step 6: Decide what type of business you want.
There are many types of businesses.How much you pay in taxes, the type of organizational structure your business will have, and the personal liability that you assume as a result of that structure are all factors that determine the kind of business you form.A sole proprietor is a business in which one person is solely responsible for the day-to-day operations.As the sole proprietor of a caregiving business, you control the business and make quick business decisions to respond to a changing market.You open yourself up to legal liability from both your employees and clients.If an employee is in a car wreck or a client is given the wrong medication, you could be sued.If you are the sole proprietor of the business, you may have to pay damages out of pocket.Liability insurance should be purchased by a sole proprietor.A partnership is a business formed between two or more businesses that each contribute to the business and share profits and losses equally.If you don't have experience in the field, it would be beneficial to partner with someone who has.You could bring in partners who bring different strengths to the company, for example one with connections with local hospitals, another with experience in medical training, and so on.Sharing control over operations and business decisions is one of the drawbacks of partnerships.A corporation is a type of business structure that eliminates double taxation and personal liability for its owners, and is led by a board of directors.Business losses, fines, or legal settlements won't come out of your own account even if you are held accountable for criminal wrongdoing.Corporations tend to have easier access to capital and often enjoy significant tax breaks, which could be important considerations as you start up your own caregiving business.Subchapter S corporations eliminate double taxation while limiting personal liability, so incorporating may be your best bet if you plan on investing in medical equipment.A variation on the corporation is the limited-liability company, a business run by members who can be either corporations, individuals, or other entities.These businesses must conform to state regulations regarding their makeup.If you are worried about the other members of the business bailing, you should forgo this type of business in favor of a corporation.If your business is sued, you won't be personally responsible.
Step 7: The paperwork needs to be taken care of.
You need to register the business, fill out tax forms, and make a payroll.All of your employees should be allowed to work in the US.To save yourself the trouble of distributing paper paychecks, use their bank account info to set up direct deposit lines.Additional certifications will be required from Medicare and Medicaid.After a Medicare/Medicaid surveying agent recommends that your business receive one, these certifications will be granted.Medicare or Medicaid dispatches a surveying agent to verify one or several of your clients qualify for Medicaid or Medicare, conducts an investigation, and ensures your caregiving agency meets Medicare/Medicaid care standards.certification is granted after this investigation.To begin the process of getting certified, your business must have at least 10 active patients on your client roster, and have patients receiving every type of care service you offer.If you are interested in receiving a state Medicare/Medicaid surveyor or private accreditor, you need to apply for a National Provider Identifier number.The process can take up to eight weeks.Higher start-up costs are required for businesses that are Medicare certified.Employees are required to be on staff at the company and not acting as independent contractors.Non-medical caregiving agencies don't need to have medical licenses.Check your state's guidelines for specific rules.Depending on the state, requirements for specific licenses and registration processes vary.The Department of Health in your state can give you more information about your business.If your business is a corporation, limited-liability company or partnership, you should register it with your county clerk or state Department of Treasury.Sole proprietors and partnerships can avoid a lot of the paperwork required of other businesses by using the DBA name.
Step 8: Liability coverage should be obtained.
If something goes wrong while you and your employees are working with a vulnerable population, you have a significant professional liability risk.Negligence is a common claim against home care companies.If you want to avoid costly lawsuits, you need adequate insurance coverage in the form of an Entity Professional Liability policy.You might want to encourage your employees to get Professional Liability insurance of their own.
Step 9: Set your rates.
It's hard to decide what to charge for your services.If you want to set your prices at a comparable level, check out other caregiving services in the area.You should be aware of the type of services you are providing.It would be foolish to charge $20 per hour for a patient who only needs to be driven to and from appointments.Major insurers in your area need to be aware of Medicare and Medicaid reimbursement limits.Factor in the strength of your local economy, the number of clients you have, and the distance to and from a given client when setting your prices.If you are a new business, set your rates lower than those of the big brands that you refused to franchise for.$20 per hour is the average rate for home care.It is possible that you need to adjust your rates.If there is still profit to be made, it might be better to take on a financially challenged client for a lower pay rate.That customer may be a good ambassador for your business and may suggest you to others in need of home care.
Step 10: The right people are hired.
It takes a special person to work with assisted-living patients.It requires a lot of skills.If your business provides medical care, you must hire employees who have all the necessary professional licenses and certificates to work in that field.There are changes to wage and employment laws.Medical professionals commonly employed in home care are certified nursing assistants and home health aides.The online course offered by the American Caregiver Association is one of the more common non-medical certification programs.Do you want your non- medical professionals to get certifications?The assisted living manager certification is offered by the ACA.There is an online course and an exam for both certifications.The courses can be completed in two days, though there is no time limit on how long you can take to complete the course.Each costs $80 and can be taken through the website of the American Caregivers Association.If you want to know what your state's licensing or certification requirements are for non-medical caregivers, check out this website.Be sure to bond your employees.Any client who successfully charges one of your employees with theft in court will be repaid up to $5,000.Conduct thorough background checks on all employees.
Step 11: You can make connections with local healthcare professionals.
At your local hospital, introduce yourself to discharge planners.When a patient is in need of home care, they should think of you first.Say "yes" to as many offers as you can when you get a call for home care.You should look for hospitals that are dissatisfied with their in- home care providers.At local or regional medical conferences, introduce yourself to hospital discharge planners.They should have your business card and brochure.Explain that you are looking for more clients.You can either call them on the phone or send them an email.We would like to work with your institution to better fulfill our patient-driven mission.Inquire as to what the hospital expects from the in- home care agencies it works with.
Step 12: Required equipment and materials should be obtained.
If your in- home caregiving business is not medical, you only need uniforms and a strong marketing budget.You will need to invest in medical equipment if you are a medically licensed caregiving business.As technology improves and you make more types of medical care available, you will need to update and improve your medical equipment.
Step 13: Get involved in vigorous marketing.
Promoting your business is an important part of marketing.Your marketing strategy should include not only traditional modes of advertising on radio, local TV, and the web, but also take advantage of social media to attract attention to the work you are doing.Talk about how your business is growing and contributing to the community with updates on Facebook and similar sites.A web designer can help you develop a website.Your site should include contact information, a list of services your business provides, testimonials from satisfied customers, and images of the happy customers you have provided care for.Your business is serious and passionate about in- home care if you maintain a blog about the joys and challenges of it.It is a good idea to get some brochures printed for your business.There are several brochures in the main office of your business.Potential clients can leave information in your brochure when they inquire about your business.If you want to leave some there for potential clients, ask at local hospitals, doctors offices, and VFW halls.Obtain business cards with your name on them.Give them to someone who is interested in your business.
Step 14: You can get a personal loan.
If you can get a personal loan from a wealthy family member, you may be able to cover your start-up costs yourself.This is the best way to cover your start-up costs.An interest-free loan will allow you to negotiate a more generous repayment plan than you can get from a bank or private funding source.You won't have to fund the whole enterprise on your own.A new home care business needs between $50,000 and $75,000 to start.
Step 15: Get a loan.
There are many financing options for a new in- home care business.After setting up your business account at the local bank, you could negotiate a loan with them.To get the loan, you have to present your business plan and make a convincing case.It is possible to get a loan with a guarantee from a public or private organization.The SBA has loan-guarantee programs.The SBA guarantees the loan when it is provided by another lender.The 7(a) Loan Program, which is available to new businesses, is the most logical one for a new in- home care business.Interest is set at zero percent for loans of less than $150,000.You can apply for an SBA 7(a) loan at the SBA website.
Step 16: You need to apply for a grant.
Grants from a private organization or government agencies are probably the most attractive option for funding a new business.With a grant, you don't have to spend your own money or pay back the grant.The grant money does not need to be repaid.Grants are more difficult to get than loans.The federal BusinessUSA financing tool can be used to investigate your options if you don't qualify for government grants.In addition to the big federal grants, look for local, private, and state grants.Community development corporations can be used for funding.Ask lots of questions of the grantor, apply early, and follow all the directions in the application.
Step 17: Consider the brand's recognition.
Is the company you are considering franchising for a well-known name in the in- home care industry?Is franchising fees and revenue shares worth operating under the brand name?You should carefully research the company you are considering opening a franchise under.You can request and review the document.Look at the company's history.Is the franchise facing stiff competition?Is the brand doing well locally and nationally?
Step 18: If you want a franchise license, apply.
Inquire about the franchising process of the company you're interested in.They want to see that you have significant funds, often between $40,000 and $260,000.You have to make a payment for the license after you've been approved, which can be anywhere from $20,000 to $90,000.
Step 19: You can attend training under franchise leadership.
You will need to understand the protocols and service techniques used by the franchise.Franchising has been successful for a reason.You can find out what it is by consulting them and going to as many professional development conferences as possible.
Step 20: The franchise has a cut.
If you want to continue operating under the franchise's name and avail yourself of their support networks and training, you will have to give them a share of your gross earnings.The royalty fees can range from 2% to 8% of your monthly gross.When you are just starting out, negotiate for a low fee.If you can procure your own office supplies, software, and marketing budget, you will be able to save money on the contract.